PP phrase modifies which - characterized by ...

[bmo]

Web2.0 refers to the new generation of web based services and communities characterised by participation, collaboration and sharing of information among users online.

Question:

Characterized by .... modifies services only or both services and communities?

Thanks a lot.

bmo

[OddThomas]

I believe the most logical reading is that characterised by modifies services and communities.

The alternative is that web based modifies services and characterised by modifies communities. This doesn't hold together very well, as you can see:Web2.0 refers to the new generation ofweb based services
and

communities characterised by participation, collaboration and sharing of information among users online.

[Marius Hancu]

I too think it means:

Web2.0 refers to the new generation of (web-based services and web-based communities) characterised by participation, collaboration and sharing of information among users online.

[OddThomas]

Yes, Marius. I just didn't want to write it out, but that's it perfectly.